Business (AS & A Level) · Oct / Nov 2022 · Paper 22 · Question 2

Cartoon Costumes (CC) Ava is an entrepreneur. After leaving school she set up CC as a private limited company and she owns 100% of the shares. CC sells ‘dressing up’ costumes (outfits) for children using ecommerce. Each costume is based on popular TV and movie characters that appeal to children. CC owns a large sewing machine which Ava uses to create the costumes. Each costume is made from brightly coloured materials which CC purchases in bulk. Ava has to produce more inventory to grow the business. This can be expensive so Ava is thinking of using crowdfunding to finance this growth. CC has completed its second full year of trading. An extract from the statement of financial position is in Table 2.1. Table 2.1: Extract from CC’s statement of financial position at 31 August 2022 $(000) 2021 $(000) Non-current assets 8 8 Current assets 60 50 Current liabilities 40 45 Non-current liabilities 18 3 Reserves and equity 10 10 Until recently CC operated from Ava’s house. However, two months ago she rented a shop in a shopping centre. Ava wants to recruit a salesperson for the shop so that she can concentrate on designing and making costumes. Details about the two best applicants are in Table 2.2. Ava must now decide who to employ. Table 2.2: Details about the two best applicants Liu Ahura Date of birth 12 February 2004 19 September 1975 Employment history • 2 years working part-time in a small retail food shop • 10 years as an actor • 10 years as manager of a large clothing shop • 5 years unemployed Highest qualifications A Levels in Business, Design Technology and Mathematics University degree in Acting Personal attributes • Good customer service skills • Likes working with other people • Highly motivated • Good administrative skills • Works well on their own Career ambitions • Would like to go to university • Would like to own a business in the future None 5 10 15 20 25 30 35

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